If you have friends who can’t stop singing the praises of ALDI of Lidl, it can be hard to know why if you haven’t been to either store yourself. But despite the overwhelmingly positive public perception of both, which one is better? Where should you transfer your usual shopping to?

As far as discount grocery stores go, ALDI and Lidl are by far the most popular globally. Both have similar marketing strategies, shopping experiences, and more. There are some notable differences, which we will outline in the following slides. So, which one is better? We offer this information so you can make your own informed judgment on the matter.

At First Glance

Lidle has stores in 34 countries. In the U.S., it has about 100 stores on the East Coast. Lidl was founded in 1930s Germany and is now a top competitor in the “discount supermarket chain,” in Europe. It is known for its affordable pricing and high-quality private labels. Oftentimes, Lidl’s private label outperforms brand-name products in quality.

ALDI has stores in 18 countries. In the U.S., it has over 2,300 stores in 39 states. ALDI is America’s fastest-growing discount grocery chain. Customers appreciate the no-frills shopping experience, low prices, and high-quality private-label products. No-frills refers to its small size and high proportion of select food for its small inventory.

Price Cutting Strategies

Lidl uses a psychographic segmentation strategy that targets price-sensitive customers or those with limited budgets. It also goals to cut out the middleman in its supply change by eliminating those costs, and gives it control over the manufacturing of its products to make efficient changes.

ALDI cuts prices that other grocers keep by carrying a limited supply offering. It eliminates the need for a large workforce by charging customers a quarter to rent a shopping cart (which is returned to the customer when the cart is returned) and requires customers to bag their own groceries. This makes the checkout counter much quicker and more efficient. Its workforce is multi-tasking and is cross-trained to perform every task.

ALDI uses cardboard boxes and the crates that the products were shipped in to display its products. While not as aesthetically pleasing as other grocery stores, it’s another way that savings are passed on to customers. You also may have noticed a quieter shopping experience- ALDI grocery stores don’t play music and no money is spent on third-party licensing fees.

Customer Loyalty Program

Lidle has a minimal customer loyalty program. By signing up for myLidl, customers get access to exclusive member coupons. There are also rewards available for new members, shopping frequently, and becoming a super shopper. That is about the extent of its loyalty program, no points or personalized ads. Some could argue that those features alone contribute to the overall savings. 

ALDI doesn’t have a customer loyalty program but is committed to providing the best prices possible to its customers. They do, however, sell gift cards.

Website Features

ALDI’s website offers online shopping, recipe collections developed in its test kitchen, weekly ads (including upcoming ALDI Finds), and a showcase of its ALDI-exclusive brands. Something unique about its website is that it publishes sustainability reports and product recalls.  

Lidl’s website offers home delivery, recipes, weekly ads, and seasonal features such as Game Day Bites, Romantic Inspirations, Sweet Gifts, Fresh Eats, and Habit Helpers. It also has a feature page showcasing the specials.

Average Prices

On ALDI’s website, there is a leadership report called “ALDI comes out on top with the lowest prices of any national grocer and best-in-class selection.” This report states that families of four can save $4,000 per year on groceries from shopping at ALDI, that ALDI-exclusive products are 63% cheaper than name-brand equivalents, and that ALDI shoppers save $8.3 billion per year. 

Lidl claims that they offer “Always the Lidl-est prices.”

Sustainability

Lidle has been partnered with WWF (World Wildlife Fund) to improve sustainability practices. Through this partnership, Lidl has agreed to commit to full transparency in its supply and production lines, report and disclose risks identified in its value change, follow the EU Deforestation Regulations, reduce environmental impacts, increase vegan and vegetarian products, report on food waste, incorporate circular economy strategies, and raise awareness through community advocacy plans.

ALDI is committed to “raising the bar on sustainability without raising prices for shoppers.” They do this with transparency; publishing yearly reports right on its website. Aldi was the first grocer in the United States to completely eliminate plastic shopping bags (customers are encouraged to bring reusable, utilize stray boxes found around the store, or purchase brown paper bags).

Community Involvement

Lidl is committed to donating and volunteering in the communities it serves. It has a partnership with Feeding America in the U.S. and says that over 11 million pounds of food have been donated to local food banks since 2017.

ALDI funds “nonprofits who work to improve youth well-being, both in and out of school.” ALDI also supports local organizations that increase nutritious food access and reduce food insecurity. US partnerships include Feeding America, and Alex’s Lemonade Stand. On its website, it says to has donated 33 Million Pounds of Food since 2021.

Environmental Impact Efforts

ALDI holds certifications from FAIRTRADE, Fair Trade USA, Aid by Trade Foundation, The Better Cotton Initiative, GOTS, The Organic Content Standard, BAP, The Marine Stewardship Council, Aquaculture Stewardship Council, GLOBALG.A.P., Responsible Fishing Vessel Standard (RFVS), and Rainforest Alliance.

It also is partnered with Honduras Coffee Project, The Issara Institute, Amfori, NAPA, Global Seafood Alliance, Sustainable Fisheries Partnership, United Egg Producers, Certified Humane, National Dairy FARM, National Chicken Council, National Turkey Federation, RSPO, SFI, PEFC, Recycled Content Certifications, Forest Stewardship Council, Sustainable Packaging Coalition, How2Recycle, U.S. Plastics Pact, FMI, and RILA.

Lidl is committed to the environment. It is partnered with How2Recycle, USDA Organic, Non-GMO Project Verified, Rainforest Alliance, Fairtrade International, Fair Trade USA, True Source Certified Honey, Certified Humane, Marine Stewardship Council, Best Aquaculture Practices, Aquaculture Stewardship Council, GLOBALG.A.P, and Certified Farming.

Product Categories

ALDI has 21 different product categories. In addition to standard produce and food categories, they include alcohol, baby items, personal care, household essentials, kids & toys, charcuterie, beverages, pet supplies, produce, meat, seafood, and bread, among many others.

Lidl has 18 product categories. In addition to standard produce and food categories, they include Taste of the World, Organic Selection, health and beauty, baby, alcohol, Household Essentials, pet shop, plants and flowers, and more.

Technology

ALDI offers an app that can be helpful in planning your next ALDI trip. It will show you weekly ads, ALDI Savers (products on extra savings), ALDI Finds, and a Store Locator. You can also order your groceries for curbside pickup, and delivery fulfillment.

In the United States, Lidl offers delivery through Shipt.

Company Awards

Recognition by the EPA Green Chill Store Certification Program, Won Most Trusted Grocery Store Chain by American Shoppers in 2022, Ranked No.1 in price on the Dunnhumby 2021 Retailer Preference Index Report.

Lidl has won Supermarket Of The Year 2024 and Fresh Produce Retailer Of The Year 2024. They have also won awards for its wine and spirits including awards from the International Wine and Spirit Competition, Decanter World Wine Awards, and recognized on the 2023 Drinks Retailer of the Year Award.

Ethical Sourcing

Lidl strongly emphasizes local sourcing to support the local economy. Connecting directly with local farmers and producers is a high priority for Lidl, which stocks as many local dairy products, meat, and produce as possible.

In 2020, ALDI UK won the Thomson Reuters Foundation’s Stop Slavery Enterprise Award. It is committed to preventing slavery in its supply chain and is partnered with FNET, Ethical Trading Initiative, University of HULL, Wilberforce Institute, Sedex Member, The Centre for Child Rights and Business, and the Slave-Free Alliance.

Besides that, ALDI also prioritizes local produce sourcing to keep organic and other produce prices as low as possible, while also supporting the local economy.

Lawsuits and Fines

The biggest scandal in ALDI history has been dubbed, “The ALDI Horse Meat Scandal of 2013.” In 2013, products from the Swedish food company Findus sold frozen food products that were labeled as “100% beef,” were found to contain as high as 100% horse meat. Testing and findings were produced by the Food Standards Agency of Ireland (FSAI). This scandal brought reform and scrutiny to the European food industry.

In 2008, Lidl was fined several million euros due to illegal spying on Lidl employees. Spy video systems, private detectives, and even wiretapping were used to keep records of private telephone conversations between employees, personal appearance assessments, and records of employee bathroom breaks. The fine came after several hundred pages of evidence were given to Stern magazine by a whistleblower.

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